Guinea’s shareholder fund hits N3.4 billion

The National Insurance Commission (NAICOM) has approved the 2017 audited financial statements of Guinea Insurance (GI) Plc, as its shareholders’ fund grew by 16 per cent from N2.9 billion in 2016 to N3.4 billion in 2017. 

The Team Lead, Corporate Communications of the firm, Ufot Hanson, said the approval was granted after a confirmation that Guinea Insurance had substantially complied with the commission’s regulatory requirements as stated in its letter dated April 11, 2018, and captioned: “Approval for Publication of Year 2017 Audited Financial Statements.”

In what could better be described as a continuous streak of good performance, the company recorded a marked shift of positive results as at the year ended December 31, 2017.

Gross Premium Written grew by seven per cent from N906.7 million in 2016 to N967.1 in 2017, with Net Premium Income rising by 15 per cent from N649.5 million in 2016 to N747.1 in 2017.

Underwriting Profit grew from N453.4 million recorded in 2016 to N501.1 in 2017, representing a growth rate of 11 per cent.

Also, claims paid by Guinea Insurance on various classes of insurance decreased by 47 per cent from N304.9 million in 2016 to N161.5 million in 2017, due to operational efficiency in terms of people, processes, technology and communications. 

However, the period under review was characterised by the whole shooting match of the Monetary Policy Committee holding interest rate at a record high of 14 per cent, while the Central Bank had kept the monetary policy rate unchanged since July 2016, with the aim of balancing the need to fight inflation and also stabilising the naira in order to support an economy emerging from its worst slump in 25 years. 

Despite of these headwinds, the underwriter’s Investment Income recorded a marginal decline of three per cent from N215.5 in 2016 to N208.3 in 2017.

A remarkable performance was delivered as the underwriter posted a Profit Before Tax increase of 35 per cent from N176.3 million in 2016 to N237.8 million in 2017; better still, it recorded a whopping Profit After Tax increase of 518 per cent from N40.6 million in 2016 to N251.0 million in 2017. 

The underwriter’s zest to be over and done with the challenge of solvency margin, was further consolidated during the year under review as its Solvency Margin grew by 13 per cent from N3.0 billion in 2016 to N3.4 billion in 2017, while increase in Shareholders’ Fund as recorded in its books stood at 16 per cent from N2.9 billion in 2016 to N3.4 billion in 2017.
 
As evident in Guinea Insurance 2017 Year-end Audited Financial Statements; its Management has been true to its pledge of returning the company on the path of profitability.